| 1 | 1 | | By: Gonzales of Williamson H.B. No. 3578 |
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| 2 | 2 | | (Senate Sponsor - Zaffirini) |
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| 3 | 3 | | (In the Senate - Received from the House May 13, 2011; |
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| 4 | 4 | | May 13, 2011, read first time and referred to Committee on Higher |
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| 5 | 5 | | Education; May 19, 2011, reported favorably by the following vote: |
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| 6 | 6 | | Yeas 6, Nays 0; May 19, 2011, sent to printer.) |
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| 7 | 7 | | |
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| 8 | 8 | | |
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| 9 | 9 | | A BILL TO BE ENTITLED |
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| 10 | 10 | | AN ACT |
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| 11 | 11 | | relating to clarification of the authorized uses for loans under |
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| 12 | 12 | | public institution of higher education emergency loan programs. |
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| 13 | 13 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 14 | 14 | | SECTION 1. The heading to Subchapter D, Chapter 56, |
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| 15 | 15 | | Education Code, is amended to read as follows: |
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| 16 | 16 | | SUBCHAPTER D. EMERGENCY TUITION, FEE, AND TEXTBOOK [FEES] LOANS |
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| 17 | 17 | | SECTION 2. Section 56.053(a), Education Code, is amended to |
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| 18 | 18 | | read as follows: |
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| 19 | 19 | | (a) The governing board of each institution shall adopt |
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| 20 | 20 | | rules providing for the terms of the loan, subject to the following: |
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| 21 | 21 | | (1) the loan must be repaid over a period not to exceed |
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| 22 | 22 | | 90 days for a loan made for a regular semester or long summer |
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| 23 | 23 | | session or over a proportionately shorter period for loans made for |
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| 24 | 24 | | a six-week summer session; |
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| 25 | 25 | | (2) the loan must be evidenced by a written or |
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| 26 | 26 | | electronic agreement providing for one of the following: |
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| 27 | 27 | | (A) interest on the loan at a rate of not more |
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| 28 | 28 | | than five percent per year; or |
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| 29 | 29 | | (B) an origination fee of not more than 1.25 |
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| 30 | 30 | | percent of the amount of the loan; and |
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| 31 | 31 | | (3) the loan amount per student may not exceed an |
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| 32 | 32 | | amount equal to the tuition, [and] mandatory fees, and cost of |
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| 33 | 33 | | textbooks for the courses in which the student is actually |
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| 34 | 34 | | enrolling. |
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| 35 | 35 | | SECTION 3. This Act takes effect immediately if it receives |
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| 36 | 36 | | a vote of two-thirds of all the members elected to each house, as |
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| 37 | 37 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 38 | 38 | | Act does not receive the vote necessary for immediate effect, this |
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| 39 | 39 | | Act takes effect September 1, 2011. |
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| 40 | 40 | | * * * * * |
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